In the second quarter, Brevan Howard and Graham Capital significantly reduced their holdings in spot Bitcoin ETFs, marking a swift pivot toward defensive strategies after an aggressive buying spree earlier this year.
Both firms notably trimmed their positions in BlackRock Inc (NASDAQ: BLK)'s iShares Bitcoin Trust (IBIT). According to data compiled by Woofun AI, Brevan Howard cut its stake from 24.3 million shares at the end of Q1 to 7.21 million by Q2's close, a decline of 70.4%. Meanwhile, Graham Capital reduced its holdings from 926,000 shares to 259,000, a drop of 72%.
These changes were disclosed in 13F filings submitted to the U.S. Securities and Exchange Commission, a mandatory requirement for institutional investment managers with assets exceeding $100 million, providing transparency into their quarterly trading activity.
Where the shift originates
The underlying cause lies in a complex macroeconomic environment. Since spot Bitcoin ETFs launched in January 2024, they attracted substantial capital inflows; however, the second quarter saw heightened volatility in the cryptocurrency market, driven by shifting interest rate expectations and regulatory policy changes. In this context, some funds chose to lock in profits or strengthen risk controls to navigate uncertainty following sharp price rallies.
It is worth noting that institutional sentiment remains clearly divided. Some funds actually increased their positions, reflecting differing views on short-term prospects rather than a uniform directional consensus. Short-term tactical moves do not necessarily indicate a long-term bearish outlook.
Retail investors can use 13F filings to gauge the strategies of professional money managers, but such adjustments should be viewed rationally. Institutional allocation to Bitcoin ETFs remains robust, with many funds maintaining or even expanding their holdings, suggesting overall participation has not been swayed by individual reductions. As the market matures and portfolio management becomes more routine, investors should weigh macroeconomic conditions and long-term trends rather than overreacting to isolated changes.
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